Fitch Ratings affirms three classes from PARTS Private Student Loan
Trust Series 2007-CT1. A detailed list of rating actions follows at the
end of this press release.
KEY RATING DRIVERS
Collateral Quality: The trust is collateralized by approximately $51.8
million of private student loans as of February 2014 that were
originated according to either TERI or LEARN underwriting guidelines.
The projected remaining defaults are expected to range between 15%-20%.
A recovery rate of 0% was applied as the data provided indicates a
minimal recovery rate.
Credit Enhancement (CE): CE is provided by excess spread. Senior notes,
benefiting from subordination provided by junior bonds, are seeing
higher parity, while subordinate notes and junior subordinates continue
to be under-collateralized. Senior, subordinate and junior subordinate
parity ratios are currently 149.67%, 98.72% and 86.15% respectively. The
outlook revision for the senior notes reflects improving parity and
sufficient CE to absorb expected losses. The Recovery Estimate (RE) for
the class B notes is approximately RE 90% and for the class C note is RE
Liquidity Support: Liquidity support is provided by a reserve fund at
Satisfactory Servicing Capabilities: Day-to-day servicing is provided by
Pennsylvania Higher Education Assistance Agency. Fitch believes the
servicing operations are acceptable at this time.
As Fitch's base case default proxy is derived primarily from historical
collateral performance, actual performance may differ from the expected
performance, resulting in higher loss levels than the base case. This
will result in a decline in CE and remaining loss coverage levels
available to the notes and may make certain note ratings susceptible to
potentil negative rating actions, depending on the extent of the
decline in coverage. Fitch will continue to monitor the performance of
Fitch affirms the following ratings:
PARTS Private Student Loan Trust Series 2007-CT1
--Class A affirmed at 'Asf', Outlook revised to Stable from Negative;
--Class B affirmed at 'CCCsf', RE 90%;
--Class C affirmed at 'Csf', RE 0%.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'U.S. Private Student Loan ABS Criteria', Jan 29, 2014;
--'Global Structured Finance Rating Criteria', May 24, 2013.
U.S. Private Student Loan ABS Criteria
Global Structured Finance Rating Criteria
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DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
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RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
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